Figure 6-7

-Refer to Figure 6-7.For a price floor to be binding in this market,it would have to be set at

Name: Figure 6-7 -Refer to Figure 6-7.For a price floor to be binding in this market,it would have to be set at
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Question

Figure 6-7
 
-Refer to Figure 6-7.For a price floor to be binding in this market,it would have to be set at

Quizplus · Accepted Answer

A price floor is binding when it is set above the equilibrium price. In this case, the equilibrium price is $6, so a price floor would have to be set above $6 to be binding.

Figure 6-7 -Refer to Figure 6-7.For a Price Floor to Be Binding